Working Smarter Not Harder Chapter 1 Chapter 1

Working Smarter, Not Harder Chapter 1

Chapter 1: Working Smarter, Not Harder Objectives OBJECTIVES ® What is Knowledge Management? ® Why Knowledge Management ® How It Came About ® KM Myths ® Implications for Knowledge Management 2

Chapter 1: Working Smarter, Not Harder Objectives “Knowing ignorance is strength; ignoring knowledge is sickness” -Lao Tsu ® The knowledge race is on ® Britain - “ambition is to turn Britain into the leading knowledge-based economy of the world. ” Prime Minister. Tony Blair, November 16, 1998 3

Chapter 1: Working Smarter, Not Harder Objectives Economic reliance on knowledge workers is increasing ® Knowledge gap ® Customers and businesses want a more integrated approach ® Best to say you are in the knowledge business 4

Chapter 1: Working Smarter, Not Harder Objectives Three primary causes of change ® Global literacy ® Invention of electronic infrastructures ® Social revitalization 5

Chapter 1: Working Smarter, Not Harder Objectives Source: http: //www. erols. com/mwhite 28/literacy. htm 6

Chapter 1: Working Smarter, Not Harder Objectives Source: http: //www. erols. com/mwhite 28/literacy. htm 7

Chapter 1: Working Smarter, Not Harder Objectives “A knowledge society requires literacy because of the vastly expanding corpus of knowledge we will also be required to learn how to learn. ” Peter Drucker, Managing For the Future, 1992, 8

Chapter 1: Working Smarter, Not Harder Objectives Literacy - Knowledge Business Jargon ® “Community of Practice” ® The Learning Organization ® Corporate University ® Chief Learning Officer (CLO) ® Chief Knowledge Officer (CKO) ® Dean of Corporate Education 9

Chapter 1: Working Smarter, Not Harder Objectives 2. Electronic infrastructures ® 1990 - Toffler’s Powershift - five features of electronic infrastructure ® Interactivity ® Mobility ® Convertibility ® Connectivity ® Globalization 10

Chapter 1: Working Smarter, Not Harder Objectives ® “Result produces a revolutionary nervous system. . . a far more adaptable, intelligent, and complex nervous system than ever before imagined. ” ® Methods of creating, storing, accessing and selling knowledge are changing ® Customers are demanding access to “just-intime” inventories of knowledge ® Invest in a well-designed electronic infrastructure Alvin Toffler, Powershift, 1990, page 364 11

Chapter 1: Working Smarter, Not Harder Objectives Electronic Infrastructures Knowledge Business Jargon "[Knowledge management] embodies organizational processes that seek synergistic combination of data and informationprocessing capacity of information technologies, and the creative and innovative capacity of human beings. " “Deciphering the Knowledge Management Hype", Dr. Yogesh Malhotra, www. brint. com/km/whatis. htm, 1998 12

Chapter 1: Working Smarter, Not Harder Objectives Electronic Infrastructures Knowledge Business Jargon ® Innovation ® “Leveraging intellectual capital” ® Bill Gates - “Digital Nervous System” ® Bill Gates – “Banks are on the way out; not banking” 13

Chapter 1: Working Smarter, Not Harder Objectives 3. Social Revitalization ® Literacy and technology skills cannot replace physical human interaction ® People want more meaningful connections both professionally and personally 14

Chapter 1: Working Smarter, Not Harder Objectives “Concern for personal well-being: ® Augmentation of intellect education, entertainment, information ® Health - physical and mental ® Security - personal safety and financial ® Personal services - customization ® Spiritual well-being - spiritualism, religion and ethnic affiliation” John Yerxa, “ 1995 Yerxa Report” 15

Chapter 1: Working Smarter, Not Harder Objectives ® The overriding questions are Who am I? What is my purpose in life? ® Result is a new language of revitalization. 16

Chapter 1: Working Smarter, Not Harder Objectives Revitalization - Knowledge Business Jargon ® “Corporate Soul” ® “Balanced Lifestyle” ® “Workplace Diversity” ® “Values Based Management” ® “Inspirational Leadership” 17

Chapter 1: Working Smarter, Not Harder Objectives Integrated Example - The Changing Education Business ® “Education is BIG business ® In 2001, the U. S. spent $5 billion on elementary books and $3. 7 billion on college books ® Lifelong learning is BIGGER business ® Who is a Teacher? 18

Chapter 1: Working Smarter, Not Harder Objectives Literacy and Education ® “Just-in-time learning” ® Communities of Practice When is recess? 19

Chapter 1: Working Smarter, Not Harder Objectives The message is Hurry Up and Learn 20

Chapter 1: Working Smarter, Not Harder Objectives Revitalization and Education ® Educators, parents, communities are concerned about the well-being of children ® Revitalization movements are increasing ® More people are calling for values education , spiritual training, and customized learning programs 21

Chapter 1: Working Smarter, Not Harder Objectives Working Smarter, Not Harder ® Overlapping Human/Organizational/ Technological factors in KM: ® People (workforce) ® Organizational Processes ® Technology (IT infrastructure) 22

Chapter 1: Working Smarter, Not Harder Objectives WHAT IS KNOWLEDGE MANAGEMENT? ® Process of capturing and making use of a firm’s collective expertise anywhere in the business ® Doing the right thing, NOT doing things right ® Viewing company processes as knowledge processes ® Knowledge creation, dissemination, upgrade, a application toward organizational survival ® Part science, part art, part luck 23

Chapter 1: Working Smarter, Not Harder Objectives OVERLAPPING FACTORS OF KM PEOPLE ® Knowledge ORGANIZATIONAL PROCESSES TECHNOLOGY 24

Chapter 1: Working Smarter, Not Harder Objectives EXPLICIT AND TACIT KNOWLEDGE Oral Communication “Tacit” Knowledge 50 -95% Information Request Information Feedback “Explicit” Knowledge Explicit Knowledge Base 5 % 25

Chapter 1: Working Smarter, Not Harder Objectives THE KNOWLEDGE ORGANIZATION Culture Competition Collect Create Techno. Maintain logy Organize Intelligence Knowledge Organization Refine Knowledge Management Process Disseminate Leadership KM Drivers 26

Chapter 1: Working Smarter, Not Harder Objectives THE KNOWLEDGE ORGANIZATION (Fig. 1. 3) ® The middle layer addresses the KM life cycle ® A knowledge organization derives knowledge from customer, product, and financial knowledge. Also from financial practices ® Indicators of knowledge: thinking actively and ahead, not passively and behind ® Using technology to facilitate knowledge sharing and innovation 27

Chapter 1: Working Smarter, Not Harder Objectives IDEAL KNOWLEDGE MANAGEMENT Existing methods/ processes Outside Environment Learning Conversion PEOPLE Insights New ideas • New products • New markets • Smarter problem-solving • Value-added innovation • Better quality customer service • More efficient processes • More experienced staff Knowledge Creation Knowledge Base Organizational Benefits Codified Technology 28

Chapter 1: Working Smarter, Not Harder Objectives IDEAL KNOWLEDGE MANAGEMENT Strategy Measurement Policy Content Process Technology Culture Knowledge Internalization Knowledge Exchange People Knowledge Assets People Knowledge Reuse Knowledge Capture Knowledge Exchange Knowledge Reuse People 29

Chapter 1: Working Smarter, Not Harder Objectives IDEAL KNOWLEDGE MANAGEMENT (Fig. 1. 4) ® The ideal knowledge organization allows people to exchange knowledge across functional areas via technology and established processes ® Knowledge internalized and adopted within the culture of the organization 30

Chapter 1: Working Smarter, Not Harder Objectives THE KM CYCLE AND THE ORGANIZATION Organizational personnel Culture KM Life Cycle. capture. gathering. organizing. refining. transfer Management Decision making Information technology Figure 1 -6 The KM cycle and the organization 31

Chapter 1: Working Smarter, Not Harder Objectives WHAT KM IS NOT ABOUT ® Reengineering ® Discipline or philosophic calling ® Intellectual capital, per se ® Based on information or about data ® Information value chain or knowledge capture ® Limited to gathering information from the company’s domain experts or retiring employees and creating databases accessible by intranets ® Digital networks 32

Chapter 1: Working Smarter, Not Harder Objectives WHY KNOWLEDGE MANAGEMENT? ® Sharing knowledge, a company creates exponential benefits from the knowledge as people learn from it ® Building better sensitivity to “brain drain” ® Reacting instantly to new business opportunities ® Ensuring successful partnering and core competencies with suppliers, vendors, customers, and other constituents ® Shortens the learning curve 33

Chapter 1: Working Smarter, Not Harder Objectives KM System Justification ® Is current knowledge going to be lost? ® Is proposed system needed in several locations? ® Are experts available/willing? ® Can experts articulate how problem will be solved? ® Is there a champion in the house? 34

Chapter 1: Working Smarter, Not Harder Objectives THE DRIVERS ® Technology Drivers. ® Process Drivers ® Personnel-Specific Drivers ® Knowledge-Related Drivers ® Financial Drivers 35

Chapter 1: Working Smarter, Not Harder Objectives FACTORS TRIGGERING INTEREST IN KM ® Innovation as core competency ® Globalization and geographic disperson changed the organization’s scope ® Downsizing and reengineering resulted in staff attrition and knowledge drain ® Networking and data communications made it easier and faster to share knowledge ® Increasing dominance of knowledge as a basis for improving efficiency and effectiveness triggered the need for utilizing knowledge gained from previous experiences 36

Chapter 1: Working Smarter, Not Harder Objectives KEY CHALLENGES ® Explaining what KM is and how it can benefit a corporate environment ® Evaluate the firm’s core knowledge, by employee, by department, and by division ® Learning how knowledge can be captured, processed, and acted on ® Addressing the still neglected area of collaboration ® Continue researching KM to improve and expand its current capabilities ® How to deal with tacit knowledge 37

Chapter 1: Working Smarter, Not Harder Objectives KM MYTHS ® KM is a fad ® KM and data warehousing are essentially the same ® KM is a new concept ® KM is mere technology ® Technology distributes human intelligence ® KM is another form of reengineering ® Company employees have difficulty sharing knowledge ® Technology is a better alternative than face-to -face ® It is “no brainer” to share what you know 38

Chapter 1: Working Smarter, Not Harder Objectives KM LIFE CYCLE Four-Process View of KM: ® Capturing – data entry, scanning, voice input, interviewing, brainstorming ® Organizing – cataloging, indexing, filtering, linking, codifying ® Refining – contexualizing, collaborating, compacting, Projecting, mining ® Transfer – flow, sharing, alert, push 39

Chapter 1: Working Smarter, Not Harder Objectives PROMOTING TRUST ® Decentralize organization structure to allow decision making by teamwork ® Reduce control-based management and encourage management by results ® Revisit company’s mission statement and ethics policy to demonstrate its new views about values ® Assess and improve employee responsibilities and accountability ® Eliminate unnecessary directives or barriers ® Install programs to improve employee commitment to knowledge sharing 40

Chapter 1: Working Smarter, Not Harder Objectives Conclusion Literacy + Electronic Infrastructure + Social Revitalization = Opportunity for New Societal Infrastructure 41

Chapter 1: Working Smarter, Not Harder Objectives ® Strategists needs all three change elements ® Literacy and Electronic infrastructures relate to knowledge distribution ® Social revitalization relates to motivation 42

Chapter 1: Working Smarter, Not Harder Objectives THE WORLD OF REEVERYTHING ® Knowledge is productive ONLY when captured in people’s mind ® Shareability requires decentralized intelligence ® We need to empower knowledge workers ® Top performers can be a problem; they are not the most humble 43

Chapter 1: Working Smarter, Not Harder Objectives ® The Knowledge Business has already changed ® Are you in the knowledge business? ® How will you close your knowledge gap? ® Is your mind geared to re-think what you think you know? 44

Working Smarter, Not Harder Chapter 1